E.—2

4

methodically conducted as those of Messrs. Neilson. The principal article short is a clack-box feedpipe of copper, which Messrs. Neilson say would be more likely to have been stolen for the value of the metal than omitted in the first instance.' Messrs. Neilson, however, express their readiness to pay for the articles omitted on receiving intimation from the other side what it has cost to supply them. The whole amount cannot be great. We shall watch these shipments with increased vigilance, to be quite sure that the mistakes do not arise on this side. Yours faithfully, (for G. W. Hemans and self), I. E. Featherston, Esq., Agent-General. Geoege B. Beuce.

• Sub-Enclosure to Enclosure in No. 5. Messrs. Neilson and Co. to Mr. G. B. Beuce. Deab Sir, — Glasgow, 22nd January, 1875. We are in receipt of copy of list of articles mentioned in our specification of engines sent to Wellington per " Strathnaver," and which are said not to have been found in the cases. We have to express our regret at the deficiencies, and to state that we shall credit you with any fair charge which may be made for them. At the same time, we must state that we cannot understand how some of the articles can possibly have been omitted here. We observe that the principal article missing—the clack-box feed-pipe —is made of copper, and we may state that we have had frequent experience of parts of engines made of copper or brass being stolen during the operation of unpacking. The other articles are bolts and nuts, for which we think a charge should not be made, as, on reference to our specification, you will observe that in case No. 7 of each engine a bag containing an assortment of extra bolts and nuts was sent by us, in case they should be required in New Zealand. Yours very truly, G. B. Bruce, Esq. Neilson and Co.

No. 6. The Agent-Geneeal to the Hon. the Colonial Seceetaey. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib,— 15th February, 1875. With reference to the Hon. the Minister for Public Works' Memorandum No. 56-74, of the 26th September, 1874,1 have now the honor to transmit, herewith, a copy of the reply which I have received from Messrs. Hemans and Bruce to the communication I made to them respecting the condition of the Waimea water pipes when landed from the " City of Glasgow," " McCallum More," and " J. A. Thompson." I have, Ac, I. E. Featheeston, The Hon. the Colonial Secretary, Wellington, N.Z. Agent-General.

Enclosure in No. 6. Mr. G. B. Beuce to the Agent-Geneeal. 2, Westminster Chambers, Victoria Street, S.W., 2nd February, 1875. Deae Sie, — Waimea Water Bace. We beg to ackowledge the receipt of Memorandum No. 56-74, addressed to yourself, from the Public Works Office, Wellington. This refers to the condition in which the Waimea water pipes were forwarded to the colony. It is there stated that there were cracked pipes in the shipments as follows: — City of Glasgow, 3 pipes. McCallum More, 12 „ J. A. Thompson, 10 „ There was no report up to date with regard to the " Varuna." Tho three former vessels had on board, respectively, 174, 576, and 103 pipes. The report states that all the cracks in the pipes were, without doubt, in existence in the foundry, inasmuch as they were filled up and covered with the same material as the rest of the pipes. It appears from the above statement that the "J. A. Thompson," which sailed from Liverpool, had Io pipes cracked out of 163; whereas the " City of Glasgow " and " McCallum More," which carried 750 pipes from Glasgow, have only* 15 pipes cracked between them, or 2 per cent., whereas the "J. A. Thompson " was 6 per cent. You may remember that the contract with the manufacturers was for delivery f.o.b. in the Clyde, and they declined taking the risk of delivery in Liverpool, involving a long carriage and more transhipments ; and the fact that so much larger a proportion of the broken was in the vessel which sailed from Liverpool, we think, evidently shows that there must be some error in the statement that the cracks were in existence in the foundry. We had an inspector resident upon the spot. All the pipes were regularly tested, and a considerable number were rejected as faulty. If any pipes were cracked prior to being coated by Smith's patent process, it must have been done in the handling in the yard, between the time of